Cathay General Bancorp (CATY), mcap=$3.1bn, price $41.70 vs $39.16

– The regional mid-cap bank is expected to be a beneficiary of a higher interest rate environment.
– Tailwinds from unusually high exposure to NII.
– At 11x through EPS.
– Outperforms peers in terms on 5yr TBV CAGR, ROA, and efficiency ratios.

– Currently sits at c. 11x through EPS.
– At 12x normalized earnings with 3.4% guided NIM and 38% efficiency – target is at $57/share.

Exp. gain: +45% to $57/share

Full $CATY write-up (free guest account required):

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